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Applying Blockchain to the Australian Carbon Market

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  • Sam Hartmann
  • Sebastian Thomas

Abstract

Blockchain is a distributed digital ledger system that establishes transparent contract processes and facilitates secure but trusted business transactions. Policy‐makers around the world are intrigued by the potential of this emerging technology to solve policy problems, including the challenges of the transition away from centralised, linear models of energy generation and consumption towards decentralised and distributed energy systems. Blockchain has also been promoted as a mechanism to transform carbon markets, yet the focus in this area to date has been on using blockchain to create new carbon market schemes. This paper addresses an important research gap by asking how blockchain could be applied to an existing carbon market. To answer this question, the study uses an established design process to develop an Australian carbon market blockchain design. The paper finds that this design could improve the efficiency, equity and effectiveness of the Australian carbon market. This paper makes an important research contribution to carbon market policy development by developing a blockchain design that could improve how an existing carbon market functions, and the findings presented here are relevant to government and industry stakeholders globally.

Suggested Citation

  • Sam Hartmann & Sebastian Thomas, 2020. "Applying Blockchain to the Australian Carbon Market," Economic Papers, The Economic Society of Australia, vol. 39(2), pages 133-151, June.
    • Handle: RePEc:bla:econpa:v:39:y:2020:i:2:p:133-151
    DOI: 10.1111/1759-3441.12266
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    References listed on IDEAS

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    Cited by:

    1. Arsenii Vilkov & Gang Tian, 2023. "Blockchain’s Scope and Purpose in Carbon Markets: A Systematic Literature Review," Sustainability, MDPI, vol. 15(11), pages 1-27, May.
    2. Ankit Dhiraj & Sanjeev Kumar & Divya Rani & Simon Grima & Kiran Sood, 2023. "Blockchain Payment Services in the Hospitality Sector: The Mediating Role of Data Security on Utilisation Efficiency of the Customer," Data, MDPI, vol. 8(8), pages 1-14, July.
    3. Rahel Mandaroux & Chuanwen Dong & Guodong Li, 2021. "A European Emissions Trading System Powered by Distributed Ledger Technology: An Evaluation Framework," Sustainability, MDPI, vol. 13(4), pages 1-21, February.
    4. Xiangyang Yu & Xiaojing Wang, 2023. "Research on Carbon-Trading Model of Urban Public Transport Based on Blockchain Technology," Energies, MDPI, vol. 16(6), pages 1-21, March.
    5. Kuralbayeva, Karlygash, 2021. "Forest carbon offsets over a smart ledger," SocArXiv hxtkg, Center for Open Science.
    6. Tao, Hu & Zhuang, Shan & Xue, Rui & Cao, Wei & Tian, Jinfang & Shan, Yuli, 2022. "Environmental Finance: An Interdisciplinary Review," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    7. Rui Sun & Dayi He & Jingjing Yan & Li Tao, 2021. "Mechanism Analysis of Applying Blockchain Technology to Forestry Carbon Sink Projects Based on the Differential Game Model," Sustainability, MDPI, vol. 13(21), pages 1-18, October.
    8. Changping Zhao & Juanjuan Sun & Yu Gong & Zhi Li & Peter Zhou, 2022. "Research on the Blue Carbon Trading Market System under Blockchain Technology," Energies, MDPI, vol. 15(9), pages 1-17, April.

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